Uber's impact on Asia Pacific industries: An examination of strategic initiatives and market dynamics

Abstract

We investigated the ramifications of Uber's announcements on stock markets within the Asia Pacific region,focusing on four critical sectors: Insurance,transportation and automobiles,technology,and travel and tourism. Utilizing data extracted from the crunchbase.com platform,the investigation spanned May 2019 to November 2023, encompassing 827 announcements across 15 countries in the region. Through analysis of the timing and content of Uber's announcements and consideration of regional nuances,this research offers nuanced insights into market responses. In the insurance sector,a discernible decline in cumulative abnormal returns before and after Uber's announcements suggested market anticipation of the challenges posed by Uber's disruptive business model. This prompted a reevaluation of traditional insurance practices within the region. Conversely,the transportation and automobile sector witnessed a notable increase in returns post-announcement,which is indicative of strategic adaptation to leverage opportunities presented by Uber's presence. This adaptation underscores the sector's readiness to capitalize on the evolving market dynamics influenced by Uber. Significant increases in cumulative abnormal returns within the technology sector indicate sustained investor confidence in Uber's technological innovations,highlighting the sector's recognition of Uber's transformative impact and its potential for growth opportunities. However,the travel and tourism sector exhibits a comparatively muted response to Uber's announcements,suggesting a limited immediate impact on the financial performance of companies within this sector in the Asia Pacific region.

Keywords

• uber announcements
• asia pacific region
• sector analysis
• market responses
• disruptive innovation